The company was founded by Nikolaus Otto, inventor of the four-stroke internal combustion engine.

Deutz once also produced agricultural machines like combines and tractors as well as commercial vehicles
such as lorries and buses. (In 1995 Deutz
sold the agricultural machinery division-called Deutz-Fahr- to SAME, an
Italian company, which formed SAME Deutz-Fahr then.) Deutz's head office is
in the Porz district of Cologne and as
of 2004 was manufacturing liquid and air-cooled diesel engines. The larger engines in the Deutz
range were manufactured in Mannheim,
at a production facility that once belonged to a company called MWM. Deutz also have production
facilities in other countries including Spain and a joint venture production
facility in China. After Deutz took over, the plant specialised in marine
engines. This facility now produces engines for marine and power generation
which can run on either fuel oils or fuel gases (including landfill gas).